ETFs

I have bought ETFs such as VTS and VEU, etc., as part of diversification to acquire overseas shares.

Is it a GIVEN that SMSFs will have to pay 15% non-resident withholding tax (despite completing an W-8BEN form). Are there alternatives to invest in US equities (Managed funds, ETFs etc.) that will not incur this 15% tax directly or indirectly?

A: Thanks for the email. The US withholding can’t be avoided. The W-8BEN form is to reduce the withholding rate from 30% to 15%.

The ATO take this tax into account when working out how much tax you need to pay here – assuming you’re a resident taxpayer in Australia.

Cheers,

Tony Negline


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